Estée Lauder collaborates with Microsoft to innovate beauty industry.
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Sponsor Our ArticlesEstée Lauder Companies Inc. has partnered with Microsoft to harness the power of Microsoft 365 Copilot, enhancing product development and market responsiveness. This collaboration aims to build a generative AI ecosystem, streamlining operations and leveraging consumer data to adapt quickly to beauty trends. With technologies like ConsumerIQ and Trend Studio, ELC is poised to innovate at unprecedented speeds, driving efficiency and empowering employees.
In a groundbreaking partnership, Estée Lauder Companies Inc. (or ELC, for short) is harnessing the power of Microsoft 365 Copilot to speed up product development and improve how they respond to the ever-changing trends in the beauty market. This collaboration is more than just a tech upgrade—it’s a significant step toward building a generative AI ecosystem that can help the company collect invaluable data, spot the latest trends, create marketing materials, and launch products at lightning speed.
Established almost 80 years ago, ELC has a treasure trove of consumer data at its fingertips. This spans everything from surveys and clinical trials to promotions and product usage insights. These insights are now accessible through the ConsumerIQ agent in Copilot Studio, allowing employees to easily find the information they need without spending hours or even days sifting through reports.
Imagine a marketing team wanting to understand the current preferences for lip gloss—now, they can just ask ConsumerIQ a simple question. Want to know if customers prefer organic lip gloss or moisturizers in a specific region? Just type it in! This use of natural language prompts means that research is not only faster but also a lot more intuitive.
Traditionally, gathering valuable insights could drag on for several days, but thanks to this generative AI innovation, decision-making is becoming much quicker. ELC’s implementation of new AI tools, like Trend Studio, is enabling the company to identify market trends swiftly and provide actionable product recommendations. This means ELC can respond to what consumers want in real-time, adapting its offerings to match emerging demands.
According to insights from McKinsey & Company, these advancements in generative AI are projected to create a mind-blowing $9 billion to $10 billion in value for the entire beauty industry. This aligns perfectly with ELC’s corporate strategy dubbed “Beauty Reimagined,” which aims to simplify operations and boost employee productivity.
As ELC navigates the complexities of managing data across 25 brands in 150 countries, the introduction of generative AI is designed to streamline and centralize this wealth of information. Gone are the days of grappling with scattered data. Now, with capabilities like ConsumerIQ providing quick summaries of large archives, creating insightful marketing campaigns is a breeze.
Looking ahead, there’s even talk of developing AI agents that can enhance training and operational processes within ELC. This could mean that less time is spent on training and more time is devoted to strategizing how to stand out in a competitive landscape.
In this high-tech transformation, Estée Lauder is busy crafting over 240 custom GPT models tailored for various uses such as data analysis and insights extraction. One exciting development has been the integration of ChatGPT Enterprise for processing data in research and development and marketing, vastly improving response times by more than 90%.
By prioritizing high-value GPT applications, ELC can focus its efforts more intelligently, shaping their marketing strategies accordingly. This democratization of AI technology will allow more employees to tap into these advancements, improving collaboration across teams and amplifying the impact of generative AI initiatives.
As Estée Lauder continues to innovate and integrate AI into its processes, it illustrates a forward-thinking approach that not only enhances efficiency but also empowers employees to make quicker and more informed decisions. With the beauty market evolving at a rapid pace, this strategic partnership with Microsoft is set to give Estée Lauder a competitive edge, enabling it to meet consumer needs before they even know they have them!
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